Lender recommending a 10 year fixed loan

[Allen Wu]

Hello,

Curious. I’m buying a primary home and all lenders pushing the 10 year fixed loan (variable after 10 years). Why are lenders pushing this? I wanted a 30 year that will cost 0.50% more but lenders all pushing me to 10 year and stating rates will come down and will refi. 

Any reason why they are strongly recommending this? 

[Jay Hurst]

Quote from @Allen Wu:

Hello,

Curious. I’m buying a primary home and all lenders pushing the 10 year fixed loan (variable after 10 years). Why are lenders pushing this? I wanted a 30 year that will cost 0.50% more but lenders all pushing me to 10 year and stating rates will come down and will refi. 

Any reason why they are strongly recommending this? 

 Maybe they are making a bit more of the 10 year product, maybe they strongly believe that rates will be dropping and you will refi so the lower rate makes sense in the short term. But, neither really matters as it is your loan and you should do want makes you more comfortable.